What steps could be taken to get lower premiums for car policies of teenagers and college students?


Teenagers should not be allowed to use expensive or luxurious cars like sports cars. When the insurance company sees such a car being used by a teenager, the premium would be immediately hiked significantly. Hence, the parents should offer only small, cheap, and safe cars to teenagers. These cars have not only lower accident records but also lesser theft rates. Hence, the insurance company would lower the premium for the car insurance policy. Further, the insurance companies look at the study records of the teenagers and college students. Students with good records are offered discounts by the insurers. They should also attend authorized driving courses and get certificates. This would result in lower premiums. Another method of lowering the premium is to increase the deductibles to the maximum possible amount. A combination of all these steps would result in a significantly low premium.